Agri-Food Policy Institute Releases New Study Evaluating Canada’s Beef Industry
By Amanda Brodhagen, Farms.com
Canada’s beef industry is at risk of becoming a net importer of beef according to a new study released by the Canadian Agri-Food Policy Institute (CAPI). The study says that the beef industry is at a “profound tipping point” and concluded that corrective action is needed in order for the industry to become a leading provider for a much needed protein – beef for a growing world population.
"Canada's beef industry is falling behind and opportunities are being eroded by a failure to work together," says CAPI President and CEO, David McInnes. "The data and interviews show our beef industry lacks a comprehensive strategy to address challenges and take advantages of the significant opportunities that the future offers."
The biggest issue that the report points out is the relationship between Canada and the United States, explaining how Canada is shipping more cattle and lower value beef cuts to the U.S. while importing higher value beef. Often, Canadians are buying cattle that are raised domestically but are processed in the U.S. The report also offers some of the causal factors of the industry’s struggles, including more competition from foreign suppliers, high value of the Canadian dollar, higher input costs such as feed, U.S. country-of-origin labelling laws and the declining consumption of beef.
The study comes to the defense of governments and says that the government has been very supportive of the industry, especially with opening new export markets. The good news is that the report doesn’t just point out all of the flaws within the beef cattle industry as it also provides a blueprint for which the industry could put into action. One of their calls to action is an industry-created strategy that would bring together all of the key stakeholders of the sector representative of the entire beef supply chain. The report stresses the need to engage stakeholders who may not traditionally have played a role in decision making to be a part of the process; some of those include health, environment, research, innovation.
"In the past, when presented with a challenge, Canada's beef industry rallied, collaborated and addressed the challenge head-on," says McInnes. "Our report suggests, and many industry stakeholders agree, that with a solid strategy, a commitment to work together, and the discipline to execute effectively - then Canada's beef industry will once again rise to the occasion and deliver the benefits that producers, stakeholders and consumers in Canada and around the world desire. The industry needs to imagine what is possible and then design a strategy to achieve that destination."